Future reductions in CO2 emissions are technologically
feasible for the industrial sector of OECD countries if technologies comparable
to the present generation of efficient industrial facilities are adopted during
regular stock turnover (replacement) (IPCC SAR, 1996). For Annex I countries
with economies in transition, GHG reducing options are intimately tied to the
economic redevelopment choices and the form that industrial restructuring takes.
In developing countries large potentials for adoption of energy and resource
efficient technologies exist as the role of industry is expanding in the economy.
Although the efficiency of industrial processes has increased greatly during
the past decades, energy efficiency improvements remain the major opportunity
(IPCC SAR, 1996) for reducing CO2 emissions.
Efficient use of materials may also offer significant potential for reduction
of GHG emissions (Gielen, 1998; Worrell et al., 1997) (see Table
9.2). Much of the potential for improvement in technical energy efficiencies
in industrial processes depends on how closely such processes have approached
their thermodynamic limit. For industrial processes that require moderate temperatures
and pressures, such as those in the pulp and paper industry, there exists long?term
potential to maintain strong annual intensity reductions. For those processes
that require very high temperatures or pressures, such as crude steel production,
the opportunities for continued improvement are more limited using existing
processes. Fundamentally new process schemes, resource efficiency, substitution
of materials, changes in design and manufacture of products resulting in less
material use and increased recycling can lead to substantial reduction in energy
intensity. Furthermore, switching to less carbon-intensive industrial fuels,
such as natural gas, can reduce GHG emissions in a cost-effective way (IPCC
SAR, 1996; Worrell et al., 1997). In addition to stock replacement, which is
an excellent opportunity to save energy, there are many low cost actions that
can be adopted as part of good management practices. Table
9.2 provides categories and examples of technologies and practices to mitigate
GHG emissions in the industrial sector (based on IPCC SAR (1996), WEC (1995),
and Worrell et al. (1997)). This summary is by no means comprehensive, but rather
an indication of the wide range of possibilities that exist within and among
industrial sectors for reducing GHG emissions. For more specific technologies
and information, the reader is referred to a wide body of literature, as has
been described in the references mentioned above.

The sensitivity of industry to climate change is widely believed to be low,
compared to that of natural ecosystems (IPCC SAR, 1996). Climate change, however,
may have (local and regional) impacts on availability of resources to industry
as a result of changes in average temperature, precipitation patterns and weather
disaster frequencies, in particular, availability of water (as a resource, energy
source or for cooling) and renewable inputs (industrial and food crops) may
be affected. Industry thus also needs to adapt to climate change, depending
on local conditions, e.g. by improving its water efficiency, by strengthening
its flexibility to cope with fluctuations in input availability, by reducing
the vulnerability of production for weather conditions, and through proper siting
and adaptations of industrial facilities. This may include a wide variety of
measures such as protecting industrial sewage cleaning installations from flooding
by storm water, reducing dependence on water use for various purposes, and siting
away from vulnerable coastal areas. Fluctuating water levels at sea or rivers
may also affect the steady supply of resources to industrial facilities, as
evidenced by the impact of extremely high water levels on river bulk transport
on the Rhine river system. There are already examples in which water scarcity
has driven innovation into water efficient industrial technologies, which have
significant energy efficiency improvements (and hence GHG mitigation potential)
as spin off. For example, water scarcity was identified as a potential threat
to the textile industry in Surat (India) in the early 1990s. This incited a
local engineering firm to invest in the development of dyeing machines customised
for local fabric quality. Water and energy consumption are only approximately
1/3 of the water and energy consumption of comparable dyeing machines available
on the international market, while the investment is much lower due to local
industry. Several hundreds of dyeing machines are now being installed annually
in the Surat region, and efforts are underway to market the technology in other
regions and abroad (Van Berkel et al., 1996).